arbster
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E-Alert!
Oct 16, 2015 18:52:07 GMT
via mobile
Post by arbster on Oct 16, 2015 18:52:07 GMT
Sorry Arbster did not mean to offend, yes I should have said that it was implied. I am new to this and already upsetting everyone. A big sorry to anyone else, I upset just trying to get things straight in my mind so that I can make more informed decisions. No real offence taken, but you did assert something far more positively than I had written. Please just take care when "quoting" people.
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min
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Post by min on Oct 16, 2015 19:06:15 GMT
Sorry Arbster did not mean to offend, yes I should have said that it was implied. I am new to this and already upsetting everyone. A big sorry to anyone else, I upset just trying to get things straight in my mind so that I can make more informed decisions. No real offence taken, but you did assert something far more positively than I had written. Please just take care when "quoting" people. In fact always best to 'quote' verbatim.
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Post by aloanatlast on Oct 16, 2015 19:45:24 GMT
What GSV3MIaC said is what I thought we were originally led to believe. But I've always found it difficult to imagine this fingers-on-buttons contest.
Dealers in collectables know the tastes and requirements of their regulars. FC's first thought with any new loan application must be, who'll be up for this one then.
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jamesc
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Post by jamesc on Oct 16, 2015 19:52:41 GMT
To avoid a repeat how do you quote someone from one thread on a different thread ? please
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Oct 16, 2015 20:27:41 GMT
To avoid a repeat how do you quote someone from one thread on a different thread ? please Open 2 windows one with source thread, one with destination thread. Click quote in source, switch to BBcode view, highlight the text you want to quote and copy. Click reply or quote in destination, switch to BB view, paste text, you will need to make sure you have included the text in the destination as that is the coding that provides attribution & displays as quote. View in preview to check & add own bit. Hope that makes sense.
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jamesc
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Post by jamesc on Oct 16, 2015 22:00:52 GMT
Thank you yes that makes sense I think! I will try it later and will let you know. thanks again
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TitoPuente
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Post by TitoPuente on Oct 22, 2015 13:12:10 GMT
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Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Oct 22, 2015 13:55:09 GMT
Newbie question: why is everyone so excited with E loans? Aren't they "junk loans"?. Can you explain or give me links to some posts with more info?
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SteveT
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Post by SteveT on Oct 22, 2015 14:05:09 GMT
Newbie question: why is everyone so excited with E loans? Aren't they "junk loans"?. Can you explain or give me links to some posts with more info? They pay 18% gross, are in short supply and sell on like hot-cakes after a couple of months (which is about as long as many like to keep hold of them) [Or, put another way, there's very little else of interest on FC these days, now that auctions are a thing of the part and the new fixed rates are at rock bottom]
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Post by nightmare on Oct 22, 2015 14:50:07 GMT
Newbie question: why is everyone so excited with E loans? Aren't they "junk loans"?. Can you explain or give me links to some posts with more info? They pay 18% gross, are in short supply and sell on like hot-cakes after a couple of months (which is about as long as many like to keep hold of them) [Or, put another way, there's very little else of interest on FC these days, now that auctions are a thing of the part and the new fixed rates are at rock bottom] Ah but you forgot to mention the part about many of them eventually being rejected by the would be borrower, thus investors & 'speculators' alike having their money tied up for a week and a half with no interest being paid. 16403 is probably about to go down the we've 'changed our minds route' very shortly.
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SteveT
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Post by SteveT on Oct 22, 2015 14:51:42 GMT
They pay 18% gross, are in short supply and sell on like hot-cakes after a couple of months (which is about as long as many like to keep hold of them) [Or, put another way, there's very little else of interest on FC these days, now that auctions are a thing of the part and the new fixed rates are at rock bottom] Ah but you forgot to mention the part about many of them eventually being rejected by the would be borrower, thus investors & 'speculators' alike having their money tied up for a week and a half with no interest being paid. 16403 is probably about to go down the we've 'changed our minds route' very shortly. Agreed, which is why I gave up actively chasing them some weeks ago.
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blender
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Post by blender on Oct 22, 2015 15:47:36 GMT
Ah but you forgot to mention the part about many of them eventually being rejected by the would be borrower, thus investors & 'speculators' alike having their money tied up for a week and a half with no interest being paid. 16403 is probably about to go down the we've 'changed our minds route' very shortly. Agreed, which is why I gave up actively chasing them some weeks ago. I am an opportunist E flipper. If I see one listed and it looks ok then I may buy it and keep through one payment. No chasing.
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am
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Post by am on Oct 22, 2015 18:42:36 GMT
Newbie question: why is everyone so excited with E loans? Aren't they "junk loans"?. Can you explain or give me links to some posts with more info? If you trust FC's projected default rates then an adequately diversified portfolio of E loans will give a greater return than the other grades. But, it's next to impossible to buy them at par, never mind build up a diversified portfolio. (I did tentatively consider putting in a couple of thousand pounds to build up a portfolio of 100 loans, but in the current regime it doesn't seem worth trying.)
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nick
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Post by nick on Oct 23, 2015 0:54:24 GMT
Newbie question: why is everyone so excited with E loans? Aren't they "junk loans"?. Can you explain or give me links to some posts with more info? If you trust FC's projected default rates then an adequately diversified portfolio of E loans will give a greater return than the other grades. But, it's next to impossible to buy them at par, never mind build up a diversified portfolio. (I did tentatively consider putting in a couple of thousand pounds to build up a portfolio of 100 loans, but in the current regime it doesn't seem worth trying.) You may not be able to buy at par, but it is easy enough to buy at a 0.8%-1% premium on the secondary market. The effective returns will be similar to buying on the PM after considering the up to 14 day dead time waiting for a loan to be drawn down plus the fact that a reasonable proportion of loans do not proceed in which case your cash is tied up for 14 days for zero return. My back of the envelope calcs for comparing the cost of dead time prior to drawdown and for loans that don't proceed versus paying a premium on the SM are follows based on £100 of loans assuming an underlying 18.1% interest rate: SM, 0.9% premium paid. Total incremental cost = £100 * 0.9% = £0.90. PM, assume average 10 days to draw down and 33% fail to complete. Total incremental cost = (£100*(10 days/360 days)*18.1%) * 1/(1-33%) = £0.65. So there is a difference, but it will be marginal if you are buying for a longer term buy and hold portfolio strategy.
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jamesc
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Post by jamesc on Oct 23, 2015 7:24:20 GMT
I agree Nick I have done just that bought into every E loan as an exercise and actually paid a lot less than 0.9% Premium more like 0.5% which bases on your calculations leaves me ahead, an example the recent 16388 I have been able to buy at 0.3% premium funny enough from someone else called n**k (any relation ? )
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